Malaysia GDP growth: World Bank revises the number down for 2021.

economy

Malaysia GDP growth: World Bank revises the number down for 2021.

World Bank used to believe that Malaysia’s GDP for 2021 will be 4.6 percent. Based on its latest assessment, it does not believe so anymore. It now believes that our GDP growth will be worse even if still positive at 3.3 percent. What has happened and why has World Bank decided to revise our GDP growth downwards? By the way, it is not just Malaysia’s numbers yeah. It has also revised downwards in terms of economic growth for countries in this region.

Article in themalaysianreserve.com The World Bank has revised down Malaysia’s GDP growth for 2021 to 3.3 percent compared to earlier forecast of 4.6 percent. The reason for this revision is because of the movement control orders, increased precautionary behaviours and subdued labour market conditions. This will drag down private consumption and local economic growth in general. It says that economic activity began to slow down in second quarter of 2021 and growth forecasts have been downgraded for most countries in the region. This is as per World Bank’s East Asia and Pacific Fall 2021 Economic Update. Do click on the article for a lot more details too Article in themalaysianreserve.com

Malaysia GDP growth: Positive despite negativelah

If we look at the popular malls; MidValley or 1Utama, it’s obvious that they are not yet back to their normal days. I know people show photos of huge number of visitors. This meant that consumption is not going to be as high as previously. However, if we look at the visitor numbers, it is hard to ignore the growing numbers when we are there on the weekends.

Car parks are still available but it’s getting more full than just 2 weeks ago. With Selangor hitting below 1,000 cases per day, the sense of optimism is definitely rising. Thus, I do think World Bank’s revision is okay. They know that we will still be growing but the pace is not as fast as they had expected. Malaysia GDP growth is restarting its engine.

With the news of inter-state travel coming in early October or middle of October 2021 (I am not supportive of this, I hope it is end October instead, read my views with numbers here), this meant that the economy recovery will start to gain strength. Perhaps a little late since it’s already October but hey, a positive number is still a positive yeah. Happy spending money if you are able to. Many of the current promotions will not continue to happen when the shops start to realise that they could sell even without the promotions. The day will come, we just do not know exactly when. Malaysia GDP growth is positive for 2021.

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Charles Tan The Founder The Writer Kopiandproperty
Charles Tan

Charles is Founder of kopiandproperty.com He writes from his investment experience for the the past 20 years in investments including property, stock, unit trust and more as well as readings and conversations with many property gurus in the industry. kopiandproperty.com is an independent property blog which is not affiliated to any media company, property developer or even real estate agencies.